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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554


                                )
In the Matter of                )
                                )
Jones Intercable, Inc.          )  CUID No.  GA0109 (City of Thomson)
                                )                                Complaint Regarding a)
Cable Programming Services Tier )
Rate Increase                   )

                             ORDER

     Adopted:  April 29, 1997           Released:  May 2, 1997  

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

     1.   In this Order we consider a complaint concerning the rate charged by the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the community
referenced above.  This order addresses the reasonableness of Operator's rate of $16.98, effective
February 1, 1997.  We conclude that Operator's CPST rate is not unreasonable. 

     2.   The Communications Act, authorizes the Federal Communications Commission
("Commission") to review the CPST rates of cable systems not subject to effective competition to
ensure that rates charged are not unreasonable.  The Telecommunications Act of 1996 ("1996 Act")
and our rules implementing the new legislation ("Interim Rules"), require that complaints against
CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received
subscriber complaints.  An LFA may not file a CPST rate complaint unless it receives more than one
subscriber complaint within 90 days after such increase becomes effective.  If the Commission finds
the rate unreasonable, it shall determine the correct rate and any refund liability.


     3.   The Commission's original rate regulations took effect on September 1, 1993.  The
Commission subsequently revised its rate regulations effective May 15, 1994.  Cable operators must
use the FCC Form 1200 series to justify their rates through a benchmark showing for the period
beginning May 15, 1994.  Operators may justify adjustments to their rates on an annual basis using
FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs, inflation,
and the number of regulated channels that are projected for the twelve months following the rate
change.  Any incurred cost that is not projected may be accrued with interest and added to rates at
a later time.  If actual and projected costs are different during the rate year, a "true-up" mechanism
is available to correct estimated costs with actual cost changes.  The "true-up" requires operators
to decrease their rates or alternatively permits them to increase their rates to make an adjustment for
over or under estimations of these cost changes.

     4.   On February 27, 1997, the LFA filed a complaint against Operator's February 1, 1997
rate increase.  The LFA has certified that it has complied with the Interim Rules.  Operator filed
with the LFA an FCC Form 1240 to justify its CPST rate increase.  Operator entered the wrong
number on Line A1 of its FCC Form 1240.  Operator should have entered $15.78 on that line
because that was the CPST rate Operator was charging prior to the rate increase triggering the
complaint.  Consequently, we have adjusted Line A1 accordingly.  This results in a maximum
permitted rate ("MPR") of $18.64 for Operator's projected period.  Because Operator was actually
charging a CPST rate of $16.98, effective February 1, 1997, we find that Operator's CPST rate in
the community referenced above is not unreasonable.  

     5.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the CPST rate charged by Operator in the community referenced above,
effective February 1, 1997, IS NOT UNREASONABLE.

     6.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaint referenced herein against the CPST rate charged by Operator
in the franchise area referenced in the caption IS DENIED.

                              FEDERAL COMMUNICATIONS COMMISSION 



                              Elizabeth W. Beaty
                              Chief, Financial Analysis and Compliance Division
                              Cable Services Bureau